The composition, inequality and determinants of wealth among households in urban China in 1995 are
studied. In addition, we compare the wealth distribution in urban China with the wealth distribution in
rural China and present the first estimates of inequality in the distribution of household wealth in China
as a whole. The results show that housing wealth makes up a large part of net worth in urban China.
Most urban Chinese households keep a bank account; debts are unusual. A household’s net worth is
strongly related to its income and location. Net worth is more unequally distributed among urban
households than among rural households. However, compared to the situation in most industrialized
countries, net worth in urban China and in China as a whole appear to be rather equally distributed.